B2B SaaS Pricing Overhaul Drives 10x ARR Growth
The Challenge
A late-stage B2B SaaS company ($3B valuation) was struggling to capture growth in its long-tail and SMB customer segments. After an unsuccessful MVP launch and a second product revamp, the company still lacked a monetization roadmap. ARR stagnated below $1M, despite the product’s strategic importance.
Our Approach
Sized the opportunity: Defined the product’s true market headroom at $100M, and set a fact-based $10M first-year target using competitor benchmarks on penetration and pricing models.
Redesigned monetization: Planned and executed a sequence of pricing experiments, shifting from monthly to daily subscriptions and adjusting price points bi-monthly. Average daily pricing rose from $10 to $35, driving LTV up by 80%.
Boosted demand during low seasons: Deployed targeted promotions, segmented discount strategies, and refined lifecycle campaigns (email + in-product nudges) across three core customer groups.
Built a revenue engine: Created forecast models anchored in seasonality, conversion, churn, and customer segmentation insights to guide ongoing decision-making.
The Impact
ARR jumped from <$1M to $10M in the first year, surpassing targets.
ARR nearly doubled again, reaching ~$20M in the first half of Year 2.
The product line became profitable within two years of investment.
